Journal of Banking & Finance Vol. 23 No. 2-4 1999
Expansion of commercial banking powers … or, universal banking is the cart, not the horse
Abstract
This short essay deals with universal banking in an environment in which a government safety net (for example deposit insurance) results in a moral hazard problem for banks. It argues that universal banking significantly exacerbates the problem. Specifically, universal banking extends the distortion of incentives caused by moral hazard to other sectors of the economy.
- DOI
- 10.1016/s0378-4266(98)00101-0
- Volume
- 23
- Issue
- 2-4
- Pages
- 655-662
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib